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- There are an estimated R88 billion worth of unclaimed assets in SA's financial sector and more than R4.5 billion worth of unclaimed dividends.
- The JSE is launching a programme to match unclaimed dividends with claimants, teaming up with a number of companies with large shareholder bases.
- JSE Investor Services, a subsidiary of the bourse operator, will be the implementation agent, and part of the initiative will involve education.
- For more financial news, go to the News24 Business front page.
The Johannesburg Stock Exchange (JSE) plans to launch a nationwide initiative to match claimants with unclaimed dividends.
The bourse operator said in a statement on Thursday that the programme follows the issuance of the Financial Sector Conduct Authority's (FSCA) discussion paper in 2022, which highlighted the issue of unclaimed financial assets.
The paper estimated that there were R88.56 billion worth of unclaimed assets spread across SA's financial sector and more than R4.5 billion of unclaimed dividends.
"We firmly believe that returning R4.5 billion worth of unclaimed dividends to South African owners of shares will make a profound economic impact on their lives," said Vuyo Lee, the JSE's director of marketing and corporate affairs.
"The JSE is supportive of the goal of ensuring that unclaimed dividends reach shareholders and that these shareholders continue to benefit from their ownership of their securities into the future."
The JSE says a range of companies with large shareholder bases are joining forces with it to help address issues such as limited or outdated information about the owners or holders of shares. The initiative will begin with a shareholder education drive to inform the public on how dividends work, how unclaimed dividends might arise, and how individuals can verify whether unclaimed shares and dividends are due to them.
JSE Investor Services (JIS), a subsidiary of the JSE, will be the bourse operator's implementation agent for the processing and paying of dividends to legitimate claimant and updating share registers.
Said Lee:
The JIS unit will use ring-fenced contact centre capabilities for the unclaimed dividends initiative and will apply data privacy and access protocols as well as robust digital capabilities to verify shareholders. This process will incorporate a direct link to Home Affairs for FICA purposes - and introduce online claims processing through ShareHub, its digital shareholder communication portal.
"The rollout of the unclaimed dividends initiative requires the involvement and support of the broader business community and financial markets to ensure its success," said Lee.
"To date, the JSE has engaged with several of the larger issuers who have indicated their commitment to participate in the initiative and will contribute to its nationwide implementation."
The JSE plans to communicate to the public, once the initiative commences, on processes they can follow to check whether any outstanding dividends are due to them.
